Hunger and Poverty in Texas: Causes and Solutions Food Insecurity: The Hunger Epidemic Witte Museum San Antonio, Texas

1. Hunger and Poverty in Texas:Causes and Solutions Food Insecurity: The Hunger EpidemicWitte MuseumSan Antonio, Texas February 18, 2010  Celia HagertSenior Policy Analyst

2. Overview Hunger and poverty: causes and consequences Solutions Expand economic opportunity Ensure a strong federal nutrition safety net (SNAP, school meals, WIC, senior meals, etc.) I�m going to talk more about poverty than hunger. Goal is to paint a context for hunger in which we can understand both causes and therefore solutionsI�m going to talk more about poverty than hunger. Goal is to paint a context for hunger in which we can understand both causes and therefore solutions

3. The Economic Context Hunger is a symptom of poverty Poverty is deep and widespread in Texas Root causes are structural, not individual Increasing economic opportunity and earnings is the long-term solution Hunger doesn�t occur in a vacuum � it is a consequence or symptom of an economic problem, which is hunger. Both problems are deep and widespread in Texas. The root causes of both problems are structural�not individual�and therefore we can solve both problems through systemic change. In the long-run, the solution to both problems will be to find ways as a state and as a nation to make economic opportunity available to everyone.Hunger doesn�t occur in a vacuum � it is a consequence or symptom of an economic problem, which is hunger. Both problems are deep and widespread in Texas. The root causes of both problems are structural�not individual�and therefore we can solve both problems through systemic change. In the long-run, the solution to both problems will be to find ways as a state and as a nation to make economic opportunity available to everyone.

4. How many people are officially poor in Texas? Who are the poor? The Numbers Define = guidelines Count = thresholds Define = guidelines Count = thresholds

5. Texas Hunger Rate Linked to Poverty

6. Poverty and Unemployment(with recession impact simulated) Unemployment is a factor in poverty and current recession will make things worse. But poverty is high in Texas even during good times: the rising tide does not lift all boatsUnemployment is a factor in poverty and current recession will make things worse. But poverty is high in Texas even during good times: the rising tide does not lift all boats

7. Hispanics and African Americans Much More Likely to Live In Poverty as Whites in Texas Some people are more likely to be poor based on their race or ethnicity.Some people are more likely to be poor based on their race or ethnicity.

8. Vast Majority of Poor Texans are Citizens As you can see here, poverty in Texas is not the result of our large immigrant population.As you can see here, poverty in Texas is not the result of our large immigrant population.

9. Poverty Rates by Citizenship No big improvement when all noncitizens are left out of poverty rate calculations. We are the 41st most-poor state without immigrant population included, compared to 43rd worst when everyone�s counted. No big improvement when all noncitizens are left out of poverty rate calculations. We are the 41st most-poor state without immigrant population included, compared to 43rd worst when everyone�s counted.

10. Texas 43rd Worst Rate of Total Population in Poverty TX = 15.8%; U.S. = 13.2%

11. www.cppp.org/research.php?aid=96

12. Why can�t families escape poverty? The cost of living has outpaced earnings Lack of education, economic opportunity limits earnings, upward mobility People are poor despite work. Most poor families with children in Texas are working families. Of the 606,400 families with children below poverty in 2007, 58 percent were headed by a worker. Approximately 1.65 million people in Texas, 908,165 of whom are children, live in these working-poor families. In the larger universe of Texas families with incomes below 200 percent of the poverty line, work participation is even higher. Of 1.4 million poor and .near poor. Texas families with children, 77 percent are working. These families include almost 4.8 million Texans, 2.4 million of whom are children. Low wages in many of the state economy�s growth sectors contribute to Texas� large working but low-income population, as do limited public assistance benefits. Low-income Texans struggle to increase their earnings due to limited economic opportunity, such as difficulty affording college.People are poor despite work. Most poor families with children in Texas are working families. Of the 606,400 families with children below poverty in 2007, 58 percent were headed by a worker. Approximately 1.65 million people in Texas, 908,165 of whom are children, live in these working-poor families. In the larger universe of Texas families with incomes below 200 percent of the poverty line, work participation is even higher. Of 1.4 million poor and .near poor. Texas families with children, 77 percent are working. These families include almost 4.8 million Texans, 2.4 million of whom are children. Low wages in many of the state economy�s growth sectors contribute to Texas� large working but low-income population, as do limited public assistance benefits. Low-income Texans struggle to increase their earnings due to limited economic opportunity, such as difficulty affording college.

13. Full-time Work at Minimum Wage ($14,500) Doesn�t Lift Texas Families Above Poverty Line You can see that a minimum wage doesn�t even get a family to the poverty level. The idea is that someone won�t work there very long, but without opportunities to get ahead, too many Texans get stuck in low-wage jobs that don�t pay enough to raise a family or afford a decent�what used to be called a middle class�standard of living.You can see that a minimum wage doesn�t even get a family to the poverty level. The idea is that someone won�t work there very long, but without opportunities to get ahead, too many Texans get stuck in low-wage jobs that don�t pay enough to raise a family or afford a decent�what used to be called a middle class�standard of living.

14. Texas Median Income Increases Slightly, But Purchasing Power on General Decline Entered median income from given year and calculated �same buying power as� for 2000. Even families earning the median income in Texas have seen their buying power decline, and with it their standard of living--due to huge increases in the cost-of-living.Entered median income from given year and calculated �same buying power as� for 2000. Even families earning the median income in Texas have seen their buying power decline, and with it their standard of living--due to huge increases in the cost-of-living.

15. Texas Among Worst States for Income Inequality in 2007 Loss of the middle class http://www.census.gov/prod/2008pubs/acs-09.pdf Compares top quintile (5th) to bottom quintile Loss of the middle class http://www.census.gov/prod/2008pubs/acs-09.pdf Compares top quintile (5th) to bottom quintile

16. The Consequences From NCCP�s FAQs: http://www.nccp.org/publications/pub_829.html Families and their children experience poverty when they are unable to achieve a minimum, decent standard of living that allows them to participate fully in mainstream society. One component of poverty is material hardship. Although we are all taught that the essentials are food, clothing, and shelter, the reality is that the definition of basic material necessities varies by time and place. In the United States, we all agree that having access to running water, electricity, indoor plumbing, and telephone service are essential to 21st century living even though that would not have been true 50 or 100 years ago. The most commonly held stereotypes about poverty are false. Family poverty in the U.S. is typically depicted as a static, entrenched condition, characterized by large numbers of children, chronic unemployment, drugs, violence, and family turmoil. But the realities of poverty and economic hardship are very different. Americans often talk about �poor people� as if they are a distinct group with uniform characteristics and somehow unlike the rest of �us.� In fact, there is great diversity among children and families who experience economic hardship. Research shows that many stereotypes just aren�t accurate: a study of children born between 1970 and 1990 showed that 35 percent experienced poverty at some point during their childhood; only a small minority experienced persistent and chronic poverty. And more than 90 percent of low-income single mothers have only one, two, or three children. The experiences of children and families who face economic hardship are far from uniform. Some families experience hard times for brief spells while a small minority experience chronic poverty. For some, the greatest challenge is inadequate financial resources, whether insufficient income to meet daily expenses or the necessary assets (savings, a home) to get ahead. For others, economic hardship is compounded by social isolation. These differences in the severity and depth of poverty matter, especially when it comes to the effects on children.From NCCP�s FAQs: http://www.nccp.org/publications/pub_829.html Families and their children experience poverty when they are unable to achieve a minimum, decent standard of living that allows them to participate fully in mainstream society. One component of poverty is material hardship. Although we are all taught that the essentials are food, clothing, and shelter, the reality is that the definition of basic material necessities varies by time and place. In the United States, we all agree that having access to running water, electricity, indoor plumbing, and telephone service are essential to 21st century living even though that would not have been true 50 or 100 years ago. The most commonly held stereotypes about poverty are false. Family poverty in the U.S. is typically depicted as a static, entrenched condition, characterized by large numbers of children, chronic unemployment, drugs, violence, and family turmoil. But the realities of poverty and economic hardship are very different. Americans often talk about �poor people� as if they are a distinct group with uniform characteristics and somehow unlike the rest of �us.� In fact, there is great diversity among children and families who experience economic hardship. Research shows that many stereotypes just aren�t accurate: a study of children born between 1970 and 1990 showed that 35 percent experienced poverty at some point during their childhood; only a small minority experienced persistent and chronic poverty. And more than 90 percent of low-income single mothers have only one, two, or three children. The experiences of children and families who face economic hardship are far from uniform. Some families experience hard times for brief spells while a small minority experience chronic poverty. For some, the greatest challenge is inadequate financial resources, whether insufficient income to meet daily expenses or the necessary assets (savings, a home) to get ahead. For others, economic hardship is compounded by social isolation. These differences in the severity and depth of poverty matter, especially when it comes to the effects on children.

17. Over Half of Texas� 4.7M Public School Kids Are Considered Economically Disadvantaged

18. �Early disadvantage, if leftuntouched, leads to academic and social difficulties later in life. Early advantages accumulate, just as early disadvantages do.� Heckman & Masterov, as cited in �Early Childhood Education for All: A Wise Investment�

19. GAPS IN ACHIEVEMENT: Fewer Economically Disadvantaged Kids Pass the TAKS Tests Average passing rate is across all tests taken and all tests that met standard -- NOT average across each test�s percentage met standardAverage passing rate is across all tests taken and all tests that met standard -- NOT average across each test�s percentage met standard

20. GAPS IN ATTAINMENT: Economically Disadvantaged and Minority Students Drop Out at Higher Rates Economic Scarring (http://www.epi.org/page/-/img/100209-scarring.pdf)� This briefing paper quickly summarizes a few of the long term impacts of a recession on families, businesses, and the economy. It talks about how child education and nutrition suffer, and that 20% of young adults delay or drop out of college. A highly productive workforce generally requires highly skilled, and thus, highly educated workers, so these minor setbacks today can lead to long term consequences � one study found that workers entering the workforce during a recession have lower earnings even 15 years later. Economic Scarring (http://www.epi.org/page/-/img/100209-scarring.pdf)� This briefing paper quickly summarizes a few of the long term impacts of a recession on families, businesses, and the economy. It talks about how child education and nutrition suffer, and that 20% of young adults delay or drop out of college. A highly productive workforce generally requires highly skilled, and thus, highly educated workers, so these minor setbacks today can lead to long term consequences � one study found that workers entering the workforce during a recession have lower earnings even 15 years later.

21. GAPS IN EARNINGS: More than One of Every Three Texas Dropouts Lives in Poverty Drop-outs are 60% more likely to be poor; Versus one in 6.67 H.S. Graduates. These education gaps leave low-skilled workers with limited employment opportunities, channeling them and their children into a life of poverty and hardship. This will have HUGE consequences for Texas as well. In our technology and service-oriented economy, our economic well-being will rise and fall with the skills of our workforce. With more than half (55 percent) of Texas� public school students identified as economically disadvantaged, and more than two-thirds identified as minority (65 percent), if Texas does not close these gaps, Texas families and the economy will certainly suffer. Drop-outs are 60% more likely to be poor; Versus one in 6.67 H.S. Graduates. These education gaps leave low-skilled workers with limited employment opportunities, channeling them and their children into a life of poverty and hardship. This will have HUGE consequences for Texas as well. In our technology and service-oriented economy, our economic well-being will rise and fall with the skills of our workforce. With more than half (55 percent) of Texas� public school students identified as economically disadvantaged, and more than two-thirds identified as minority (65 percent), if Texas does not close these gaps, Texas families and the economy will certainly suffer.

22. Long-term solution to poverty & hunger: Increase economic opportunity so people can learn more, earn more Ending poverty will require tremendous change at all levels of society. We�ll need an American people committed to making this change and able to elect political leaders with the will and the courage to make it happen. In the meantime, we have very effective solutions to prevent hunger in low-income families. And that�s what I�m going to talk about nextEnding poverty will require tremendous change at all levels of society. We�ll need an American people committed to making this change and able to elect political leaders with the will and the courage to make it happen. In the meantime, we have very effective solutions to prevent hunger in low-income families. And that�s what I�m going to talk about next

23. Short-Term Solution to Hunger: Improve Nutrition Safety Net This needs to be our mission statement. We came together as a nation over half a century ago and said Hunger is Unacceptable. It began after WWII when Congress created the NSLP. Too many men were turned down from the draft fro malnutrition. In the mid 70s, the modern-day FSP was created after a TV documentary exposed the effects of malnutrition on American children. Our public nutrition safety net has grown over time and today prevents hunger and improves nutrition for millions of Americans each year. As a result, few Americans experience severe or chronic hunger.This needs to be our mission statement. We came together as a nation over half a century ago and said Hunger is Unacceptable. It began after WWII when Congress created the NSLP. Too many men were turned down from the draft fro malnutrition. In the mid 70s, the modern-day FSP was created after a TV documentary exposed the effects of malnutrition on American children. Our public nutrition safety net has grown over time and today prevents hunger and improves nutrition for millions of Americans each year. As a result, few Americans experience severe or chronic hunger.

24. Gaps in the Nutrition Safety Net #1 Many eligible families aren�t getting federal food assistance* Flaws in the poverty measure prevent needy families from getting assistance #2 Many needy families don�t qualify for federal food assistance Barriers limit access for eligible families *Federal food assistance = SNAP/Food Stamps, School Lunch/Breakfast, Afterschool/Childcare, Summer Food, WIC, Commodities But there are gaps�some of which are larger in Texas than the nation�that we need to close the make good on our promise that Hunger is Unacceptable.But there are gaps�some of which are larger in Texas than the nation�that we need to close the make good on our promise that Hunger is Unacceptable.

25. #1: Many Texans Qualify for Food Assistance But Do Not Receive It

26. Many Texans Qualify for Assistance But Do Not Receive It

27. Too Many Families Relying on Food Banks Not Getting Federal Food Assistance

28. Texas Failing to Process More and More SNAP (aka Food Stamp) Applications on Time Retrieved from http://www.hhsc.state.tx.us/research/FMTtimeliness.html Disposed - the number of applications worked to a decision (approved and/or denied) and provided a benefit if approved. Timely - the number of applications disposed within the established time frames for the program. September data by region SNAP Food Benefits APPLICATIONS Region Disposed Timely Percent 01 3,906 1,849 47.3% 02 2,325 1,334 57.4% 03 21,810 9,587 44.0% 04 5,942 4,527 76.2% 05 4,755 3,637 76.5% 06 19,665 7,095 36.1% 07 12,041 10,375 86.2% 08 10,977 7,234 65.9% 09 2,846 1,298 45.6% 10 4,380 2,844 64.9% 11 12,726 8,784 69.0% 00 4,211 3,344 79.4% TOTAL 105,584 61,908 58.6% Retrieved from http://www.hhsc.state.tx.us/research/FMTtimeliness.html Disposed - the number of applications worked to a decision (approved and/or denied) and provided a benefit if approved. Timely - the number of applications disposed within the established time frames for the program. September data by region SNAP Food Benefits APPLICATIONS Region Disposed Timely Percent 01 3,906 1,849 47.3% 02 2,325 1,334 57.4% 03 21,810 9,587 44.0% 04 5,942 4,527 76.2% 05 4,755 3,637 76.5% 06 19,665 7,095 36.1% 07 12,041 10,375 86.2% 08 10,977 7,234 65.9% 09 2,846 1,298 45.6% 10 4,380 2,844 64.9% 11 12,726 8,784 69.0% 00 4,211 3,344 79.4% TOTAL 105,584 61,908 58.6%

29. SNAP Not Reaching Its Target Population

30. #2: Many Needy Families Don�t Qualify for Food Assistance Eligibility for food (and other public) assistance is tied to Federal Poverty Measure The Federal Poverty Measure is flawed: Poverty = 3 x cost of food per family size (methodology from the 1960s) Fails to take into account today�s cost of living Child care Medical costs Housing http://www.usccb.org/cchd/povertyusa/povquiz.shtml ...In 2000, a majority of Americans believe it takes at least $35,000 annually to provide adequately for a family of four. (Poverty Pulse poll, 2000) --That�s equal to $43,868.70 when adjusting for inflation in 2009 The U.S. Census Bureau establishes annual income thresholds to measure poverty and estimate the number of poor people. People in families with income below the federal poverty threshold are considered poor. The U.S. Department of Health and Human Services uses these thresholds to set income guidelines, which vary by family size and are referred to as the �federal poverty level� (FPL). FPL is used to determine eligibility for many government programs. Private organizations also use these guidelines to determine eligibility for their services to low-income families. The �federal poverty level� (FPL) - Individuals in families with income below the federal poverty level are considered poor Guidelines reflect the minimum amount of income that American households need to subsist Federal poverty �guidelines� are used to determine eligibility for many federal, state, and local programs Private organizations also use these guidelines to target their services to low-income families http://www.usccb.org/cchd/povertyusa/povquiz.shtml ...In 2000, a majority of Americans believe it takes at least $35,000 annually to provide adequately for a family of four. (Poverty Pulse poll, 2000) --That�s equal to $43,868.70 when adjusting for inflation in 2009 The U.S. Census Bureau establishes annual income thresholds to measure poverty and estimate the number of poor people. People in families with income below the federal poverty threshold are considered poor. The U.S. Department of Health and Human Services uses these thresholds to set income guidelines, which vary by family size and are referred to as the �federal poverty level� (FPL). FPL is used to determine eligibility for many government programs. Private organizations also use these guidelines to determine eligibility for their services to low-income families. The �federal poverty level� (FPL) - Individuals in families with income below the federal poverty level are considered poor Guidelines reflect the minimum amount of income that American households need to subsist Federal poverty �guidelines� are used to determine eligibility for many federal, state, and local programs Private organizations also use these guidelines to target their services to low-income families

31. Federal Poverty Guidelines

32. Monthly Costs for Single-Parent, 2-Child Family in Fort Worth-Arlington

33. Necessary Income for Single-Parent, 2-Child Family in Fort Worth-Arlington Hourly = $19 - $23/hour Annual = $38,737 - $46,709 226% to 272% of poverty line 2007 ACS for FW-Arlington Metro Division (Table B24092) Median earnings for full-time, year-round civilian employed pop 16 and older Women = $34,648 ($16.66) Men = $43,912 ($21.11) 2007 ACS for FW-Arlington Metro Division (Table B24092) Median earnings for full-time, year-round civilian employed pop 16 and older Women = $34,648 ($16.66) Men = $43,912 ($21.11)

34. Total Monthly Expenses for Families in Dallas-Plano-Irving as Percentage of the Federal Poverty Level

35. Public Assistance Programs Not an Option for Many Working Families From NCCP FAQs: Material deprivation is not as widespread in the United States as it was 30 or 40 years ago. For example, few Americans experience severe or chronic hunger, due in large part to public food and nutrition programs, such as food stamps, school breakfast and lunch programs, and WIC (the Special Supplemental Nutrition Program for Women, Infants, and Children). Over time, Social Security greatly reduced poverty and economic insecurity among the elderly. Increased wealth and technological advances have made it possible for ordinary families to have larger houses, computers, televisions, multiple cars, stereo equipment, air conditioning, and cell phones.From NCCP FAQs: Material deprivation is not as widespread in the United States as it was 30 or 40 years ago. For example, few Americans experience severe or chronic hunger, due in large part to public food and nutrition programs, such as food stamps, school breakfast and lunch programs, and WIC (the Special Supplemental Nutrition Program for Women, Infants, and Children). Over time, Social Security greatly reduced poverty and economic insecurity among the elderly. Increased wealth and technological advances have made it possible for ordinary families to have larger houses, computers, televisions, multiple cars, stereo equipment, air conditioning, and cell phones.

36. Public Health Insurance More of an Option for Children, Elderly, Disabled From NCCP FAQs: Material deprivation is not as widespread in the United States as it was 30 or 40 years ago. For example, few Americans experience severe or chronic hunger, due in large part to public food and nutrition programs, such as food stamps, school breakfast and lunch programs, and WIC (the Special Supplemental Nutrition Program for Women, Infants, and Children). Over time, Social Security greatly reduced poverty and economic insecurity among the elderly. Increased wealth and technological advances have made it possible for ordinary families to have larger houses, computers, televisions, multiple cars, stereo equipment, air conditioning, and cell phones.From NCCP FAQs: Material deprivation is not as widespread in the United States as it was 30 or 40 years ago. For example, few Americans experience severe or chronic hunger, due in large part to public food and nutrition programs, such as food stamps, school breakfast and lunch programs, and WIC (the Special Supplemental Nutrition Program for Women, Infants, and Children). Over time, Social Security greatly reduced poverty and economic insecurity among the elderly. Increased wealth and technological advances have made it possible for ordinary families to have larger houses, computers, televisions, multiple cars, stereo equipment, air conditioning, and cell phones.

37. Texas Low-Income Children vs. Served by �Safety Net�

38. Family Budget Estimator (FBE) www.cppp.org/fbe The Family Budget Estimator (FBE) Project provides a realistic picture of how much it costs Texas families in different areas of the state to meet their basic needs. The Family Budget Estimator (FBE) Project provides a realistic picture of how much it costs Texas families in different areas of the state to meet their basic needs.

39. Our Shared Challenge  Make sure everyone eligible for food assistance is getting it Less than half of eligible population gets SNAP Fewer than one in five eligible children get free summer meals Make sure everyone who needs food assistance is getting it Since eligibility is tied to the official poverty measure, many needy families don�t qualify for federal food assistance Need to revise poverty measure or income limits for food programs

40. Contact Information Celia Hagert hagert@cppp.org (512) 320-0222 ext. 110 Sign up to receive notice of our work at: www.cppp.org